Support Structure being Tested!

FX:EURAUD   Euro / Australian Dollar
190 2 8
Well, another simple trade idea right here. Jotted down some notes on the chart, but overall what I'm looking for is a break below the current support area at 1.3790. A break below will give me a short entry signal with overall price targets being the next area of support in the 1.3100 area which is roughly 700 pips down =). Any rejection of support will make me sit on the sidelines waiting for a retracement to the purple Fibonacci levels. With the ideal level for any short entry being the .618 Level at 1.4459, but I will watch the lower levels for any signal to enter short (Daily pin-bar / Doji Candle rejections, etc.) . Of note is the 200MA / 50 MA crossover at the .618 Fibonacci Retracement , thus making it an area of strong resistance strong resistance.

Now on a Daily break below support I will be looking to take one of two trading entries (Aggressive or Conservative) .
The aggressive entry will be simply entering a short on a break below. The passive entry will be going down to the lower time frames such as the 4HR / 2HR             and waiting for a retrace and retest of the broken support to signal a more conservative short entry. Now when looking for profit targets you can use the Fibonacci extensions, removing risk (moving stops to break even once the first trade target is hit i.e. the -.27 Extension being Target 1, and 1.3100 being the overall target).

Happy Trading traders =)
And as always use your own personal discretion and risk management when handling the trade.
Feel free to post your own personal ideas on the pair in the comment section, as it always makes it
a more productive environment when everybody throws in their own personal views on a trade =)
Update: No trade has been entered, and further Aussie weakness should push the pair up to the Fibonacci areas of interest to start looking for signs of weakness in this pair for a very nice short entry.
+1 Reply
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